Our forecasts for the domestic economy in Chapter I assume the continuation of present economic policies, and hence implicitly that the Conservatives are returned to power at the next General Election. Here we look at some of the changes in policy which might follow a Labour victory. As yet, relatively few firm commitments have been made by the Labour Party, so we cannot make any overall assessment of their plans. Instead we consider a range of options based on the general statements of objectives which have been made. The aims and priorities of a Labour Government would differ somewhat from those of the present Government; and a Labour Government would consider a wider range of options for policy change, including some that have been ruled out explicitly by government in recent years.